Prime Highlights:
- Jim Cramer recommends Casey’s General Stores as a strong investment option outside the Mag7 tech stocks.
- Casey’s growth is fueled by its expanding locations and popular food menu, especially the breakfast pizza.
Key Facts:
- Casey’s operates nearly 3,000 locations across the U.S. and is expanding into Texas and Florida.
- The stock has risen more than 28% year-to-date, demonstrating strong investor confidence.
Key Background:
Investors looking to diversify beyond the “Magnificent Seven” tech stocks might want to keep an eye on Casey’s General Stores, Jim Cramer suggested on Monday.
“If you’re seeking a broader stock opportunity, consider Casey’s,” Cramer said on Squawk on the Street. His recommendation comes amid concerns that the market has become heavily dominated by the top tech players.
Casey’s, a Midwest-based convenience store and truck-stop chain, is carving out its own growth story. The company operates nearly 3,000 locations across the U.S. and is expanding into southern states, including Texas and Florida. Its menu of prepared foods, particularly the breakfast pizza, has been a major driver of customer traffic.
Cramer added a lighthearted note, saying, “If we had a Casey’s General in New York City, I would switch from the Egg McMuffin to the breakfast pizza in a heartbeat.”
Analysts have also taken note of Casey’s business model. KeyBanc Capital Markets highlighted that the company earns roughly 30% of its gross profit from fuel sales, making it less dependent on fuel compared with other convenience stores. They also see potential in industry consolidation as a long-term benefit for the company.
Casey’s stock has already impressed investors, rising more than 28% year-to-date, although it has slightly pulled back from its all-time high of $527.51 in late July. “They continue to deliver strong numbers, and I expect this trend to continue,” Cramer said.
With a combination of regional expansion, a popular food menu, and steady financial performance, Casey’s General Stores is positioning itself as a promising alternative investment outside the tech-heavy Mag7, offering both growth potential and a taste of America’s favorite breakfast pizza.
